microeconomics chapter 3 - dr.q

"In the corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?

In the second statement.

Refer to the diagram. A price of $20 in this market will result in a:

shortage of 100 units

Refer to the diagram. A government-set price floor is best illustrated by:

price c

In this market, economists would call a government-set maximum price of $40 a:

price ceiling

If government set a minimum price of $50 in the market, a:

surplus of 21 units would occur.

Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be:

0F and 0C, respectively

Refer to the diagram. A decrease in quantity demanded is depicted by a:

move from point y to point x

Refer to the diagram. A government-set price ceiling is best illustrated by:

price a

Refer to the diagram. A government price support program to aid farmers is best illustrated by:

price c

Refer to the diagram. A decrease in demand is depicted by a:

shift from D2 to D1

Refer to the diagram. A decrease in supply is depicted by a:

shift from S2 to S1

Refer to the diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market the indicated shift in supply may have been caused by:

the development of more efficient machinery for producing this commodity.

Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. If supply is S1 and demand D0, then

0F represents a price that would result in a shortage of AC.

Refer to the diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market the indicated shift in demand may have been caused by:

an increase in incomes if the product is a normal good.